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Reading the volatility tea leaves

Nationwide Financial

In times of peaking pessimism and extreme bearishness, investors often try to parse how the financial markets are reflecting an array of risks. However, how might the market reflect its trepidations when trying to digest those risks? This behavior is like what was seen near the bottom in 2002, 2009, and 2020.

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Market Outlook: 3 Reasons Long-Term Investors Should Be Optimistic

Darrow Wealth Management

For much of last year, even good news about the economy was bad news for markets. Yes, 2022 was a terrible year for financial markets. 3 reasons for investors to be optimistic about the long-term market outlook Short-term market moves should always be expected, especially for equity investors.

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Why volatility matters when investing

Nationwide Financial

Two of the most significant developments in the financial markets during 2022 were the breakout of higher interest rates and the return of stock market volatility. For a glimpse of how volatile stocks were last year, consider the VIX Index, often used as a gauge of fear or stress in the stock market.

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New Year, New Clean Slate

Investing Caffeine

The bad news is last year turned out to be the 4th worst year in the stock market since World War II (1945) and also marked the worst year since 2008. The good news is that the stock market is up 81% of the time in subsequent years following down years. Typically, during weak stock markets (i.e., 2022: -19.4%.

Economy 59
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Markets attempt a bounce on encouraging earnings

Nationwide Financial

This is similar to the market behavior near the bottoms in 2002, 2009, 2011, and 2020, reflecting the willingness of institutional investors to dip their toe back in the water. Despite historic levels of investor pessimism, the S&P 500® Index has shown 2% gains in six sessions in the past month in an effort to bounce.

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No More Bear Markets

The Irrelevant Investor

Remember when bear markets used to last more than a few months? Everything moves faster these days, especially financial markets. This chart might be a bit of an eyesore, but it shows the history of how long it took for stocks to get back to even following a bear market. It was the fastest bear market ever.

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5 Best Investment Hedges Against Inflation

Good Financial Cents

in May 2022 to pay for what $1,000 bought in May 2002. To say the economy and financial markets are in a state of flux is a serious understatement. Using the Bureau of Labor Statistics CPI Inflation Calculator , we see that it took $1,625.67 That’s an increase in the cost of living of nearly 63% in the last 20 years.